Saturday
July 26, 2014

Homework Help: Business

Posted by Ariana on Monday, May 17, 2010 at 11:59pm.

The U.S. cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic market shares. Supposed a manufacturer estimates its marginal costs at $1.00per pack, its own price elasticity at -2, and sets its price at $2.00. The company’s settlement obligations are expected to raise its average total cost per pack by about $.60. What effect will this have on its optimal price?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Economics - The U.S. cigarette industry has negotiated with Congress and ...
economics - U.S. cigarette makers face enormous punitive damage penalties after ...
Economics - Which of the following contains only positive statements, rather ...
Business law - The Supreme Court threw out a $79.5 million punitive-damages ...
Statistics - Im kind of confused on this question?? To help consumers assess the...
Downsizing and Fixed Costs - Industry downsizing has been a major part of the ...
Statistics - A manufacturer of a low-tar cigarette claims that their cigarettes ...
buisness - Industry downsizing has been a major part of the corporate world, ...
health - A typical smoke will take ___ on a cigarette over a period of 5 minutes...
check american government - although a democracy is based on freedom of ...

Search
Members